question about modded 360s, if microsoft figures out that your 360 is modded, will it just ban you from xbox live, and you will still be able to use the machine to play games, or will it kill the entire system so you can't use it at all?

question about modded 360s, if microsoft figures out that your 360 is modded, will it just ban you from xbox live, and you will still be able to use the machine to play games, or will it kill the entire system so you can't use it at all?